Forex Today: Slight USD retreat in Asia, UK CPI, BOE hearings - Key

A slight retreat in the US dollar and treasury yields in Asia this Tuesday, prompted a brief recovery spree across all the asset classes, with the yen benefiting the most amid a lack of fresh fundamental news.

The AUD/USD pair kept the range above 0.7550 levels almost throughout the Asian session, paying little attention to the RBA meeting minutes, which offered no new surprises offered by the minutes, which cited that risks around inflation forecast 'broadly balanced' and that the economy continues to grow at a moderate pace.

Looking ahead, we have a very busy economic calendar today, kicking-off with German prelim GDP, followed by Euro zone flash GDP, German ZEW surveys and trade balance data. While UK docket remains the key one, with CPI and BOE inflation report hearings on the cards. Moving onto the NA session, the US retail sales and regional manufacturing index will hog the limelight.

Main topics in Asia

RBA minutes: Risks around inflation forecast 'broadly balanced'

The minutes of the November RBA meeting when interest rates were held unchanged at 1.75% have been released.

China’s oil output drops to 7-year low

Daily oil production in China fell to a seven-year low in October, according to data from the country’s statistics bureau.

USD/CNY: Yuan hits fresh 8-year lows, PBOC intervention on cards?

The Chinese yuan extends its downward trajectory versus the American dollar on Tuesday, hitting the weakest levels since December 2008, despite a slight retreat in the greenback across the board.

Risk-off grips Asia as treasury yields, USD retreat

Risk-off sentiment seeped back into the Asian markets this Tuesday, as the treasury yields retreated across the horizon after the recent Trump optimism-led rally, as investors now turn their attention on the economic fundamentals.

Key focus for the day ahead

EUR/USD flat-lined around 1.0750 ahead of German GDP

Having bottomed out just ahead of 1.07 handle in the last US session, EUR/USD attempted a minor-recovery and rose as high as 1.0770 in early Asia, before meeting fresh supply to now consolidate around 1.0750 heading into early Europe.

'There is no plan' for Brexit, leaked memo says: BBC

According to a leaked memo obtained by the Times and BBC, the British government has no overall Brexit plan and a negotiating strategy may not be agreed by the cabinet for six months.

GBP/USD hits fresh lows near 1.2470, UK CPI, BOE eyed

The pound remains under mild bearish pressure against the US dollar in early Europe, sending GBP/USD further below 1.25 handle.